Shares of CG Power and Industrial Solutions were locked at 20 percent lower circuit intraday on August 20 after the company recognised irregularities in its financial statements. unauthorised transactions
The scrip has hit a new 52-week low of Rs 14.75.
The company in a regulatory filing on August 19 said that an internal probe has uncovered some irregularities in the financial statements of the company.
"While working on one of its priority tasks of seeking refinancing of certain facilities and as a part of conducting financial analysis in this regard, the Operations Committee was made aware of some unauthorised transactions by certain employees of the company," the BSE filing said.
An independent legal firm appointed by the board of directors to probe financial wrongdoings pointed out certain misrepresentation in financial statements of the company and unauthorized financial transactions.
The company plans to conduct a detailed forensic investigation to establish the accountability of wrongdoings and will take requisite legal actions to protect its interest.
CG Power is part of Avantha Group, founded by Gautam Thapar, and has two differnt segments as power systems and industrial systems.
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